Petroleum Economics
Essential Knowledge for Improved Sales Performance
Overview
Oilfield
service companies are dependent for their existence on
selling to oil and gas companies. Successful selling
requires knowledge of the client’s needs, their wants (not
necessarily the same thing) and how they think. Whilst
individual oil company buyers will vary in how they think,
there are certain fundamentals of the oil business that
drive their decisions. This seminar is designed to give an
insight into those fundamentals, focused particularly on
the economics of the upstream oil and gas Exploration &
Production business.
Comparisons are drawn with the oilfield service companies’
business models and business drivers, in order to bring
home the differences between the two energy-involved
sectors.
Oilfield service companies are active in all of the oil and
gas resourced countries of the world. There have been huge
shifts in the oilfield service client base as national oil
companies have moved to take control of their own resources
over the last half century. National oil companies and
international oil companies are frequently driven by
different and contrasting objectives, with correspondingly
different approaches to oil and gas economics.
The seminar’s central theme is the calculation of economic
value. An understanding of how oil companies assess the
economic value of their projects and how oilfield services
fit into those assessments is an essential weapon in the
armory of a service supplier when approaching the sale of a
product or service to an oil company. Without such
knowledge, the buyer will always have the upper hand in
negotiations, whether in a tender bid or in a negotiated
sale. The seminar teaches how an understanding of the
customer’s economic drivers can be used to formulate better
business and pricing models and how to structure business
deals that will be more attractive to the customer. The
training aims to impact the service company’s business by
achieving improved sales performance by teaching how to
communicate service company value in oil company language.